The government has initiated a revamp of the CMSF, which has faced long-standing criticism for its structural flaws and management issues, to ensure stock market stability. Recently, a high-level meeting within the Financial Institutions Division of the Ministry of Finance proposed several measures to enhance the fund’s effectiveness and transparency.

Under the proposed 2025 law, CMSF will be designated as a statutory fund. Consequently, the fund’s structure, management, and financial operations will be better organized, and its relationship with the Bangladesh Securities and Exchange Commission (BSEC) will be reinforced.

The new strategy will establish a seven-member board, led by the BSEC chairman. This board will also include representatives from the Ministry of Finance, DSE, CSE, and other significant organizations. Online Stock Brokerage.

The fund’s workforce will be restructured, and its operations will be managed under BSEC or BANM, which will help lower operational expenses. The revenue generated from CMSF will be allocated for investment education and raising awareness among investors. Additionally, it will serve as a central hub for dividend distribution, simplifying the TDS system for investors.

At present, CMSF has accumulated Tk 697.10 crore in cash and 143.7 crore shares as dividends from issuing companies. However, only a fraction of this amount has been utilized to satisfy investor demands. Recently, the Finance Ministry instructed the transfer of approximately Tk 1,500 crore from the fund to the government treasury, but BSEC opposed this action. Since these funds are specifically designated for investors, it is not legally permissible to divert them to the government sector.

Experts assert that if the proposed reforms are enacted, the efficiency of CMSF will significantly improve, playing a crucial role in stabilizing the country’s stock market.